Home and Personal CareDownload pdf version
HOME AND PERSONAL CARE
PERFORMANCE SUMMARY
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Volume growth in Home Care driven by strong summer campaign | |
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Focused cost management and solid overall equipment effectiveness | |
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Personal Care impacted by volatile category demand |
STRATEGIC OUTLOOK
We are looking to deliver growth in Home Care particularly in the pesticides category, off the back of existing brand strength and affordable product innovation. We will be launching several unique innovations, as well as looking to drive geographic expansion of some of our leading brands into new markets in Africa.
In Personal Care, our picture of success is for Ingram’s to be developed into a leading master-brand with innovation-led growth into adjacent categories as well as improve overall profitability.
| FINANCIAL HIGHLIGHTS | ||||||
| +6% | +8% | |||||
| REVENUE | OPERATING INCOME | |||||
R2,0 billion (2020: R1,8 billion) |
R433 million (2020: R400 million) |
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| OPERATING MARGIN | ||||||
22,2% (2020: 21,7%) |
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Overall revenue in Home and Personal Care increased by 6% to R2,0 billion, resulting from sustained category leadership in the pesticides category within Home Care offset by a disappointing performance in Personal Care, reflective of the adverse consumer dynamics specific to this category.
The strong volume uplift in Home Care was underpinned by a strong summer campaign at the start of the year, which included the benefits of effective in-store execution and innovation. This performance was sustained in the second half with revenue for the year up 11%. Operating income increased by 20% when compared to the prior year, due to improved efficiencies, better material usage variances and tight overall cost control.
Although Personal Care enjoyed a recovery in operating income in the second half, it was not enough to offset the weak start to the year. Volatile category demand together with retailers prioritising essential categories during the civil unrest, resulted in a volume reduction of 6% for the year. Despite selling price inflation of 3%, the lower volumes resulted in revenue declining by 3% to R643 million. Operating income declined to R47 million from R79 million the previous year.